BUSINESS ASSOCIATIONS SOLE PROPRIETORSHIP I. DEFINITION An unincorporated business owned by one person, the person and the business are the same. Business profits, losses are reflected on the individual’s income tax return. No enabling act required. No filing necessary to create (but may need to file under state’s Fictitious Name/DBA statute). II. ADVANTAGES Complete control of business decisions; owner can keep all profits. No formalities necessary to create. III. DISADVANTAGES Owner has unlimited/personal liability in contract & tort. Limited access to additional capital. GENERAL PARTNERSHIPS I. DEFINITION 1. The Uniform Partnership Act (UPA) defines a P/S as “two or more persons carrying on a business for profit.” The persons “carrying on” the business must be co-owners. “... for profit” is to distinguish from not-for-profit (i.e., charitable, religious) organizations that do not have a primary profit-making motive. A P/S is viewed as an AGGREGATE of its members. Unlike a CORPORATION, it is not viewed as a separate person. A P/S is only viewed as an entity: a) for purposes of owning (taking title to) P/S property. and/or

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